2. A new copier company plans to produce one model of copier. The copiers will sell for $820 each.The annual fixed costs of operation are $5,600,000 and the variable cost is $210 per unit.a. Assuming that they can sell everything they produce at this price, compute the breakevenquantity QBEP.b. If the company actually produces 11,000 copiers the first year, what will the profit/loss be?c. Include a fully-labeled breakeven chart illustrating the problem.3. Fixed and variable cost for three potential facility locations are as shown below.Fixed costVariable costLocationper year$240,000$100,000$150,000per unit$15$30$20a. Plot the total cost lines for these four locations on a single cost-volume graph.b. If expected output is to be 12,000 units per year, which location would provide the lowest cost?c. Identify the range of output over which each location alternative would be preferred (lowestcost). Compute the relevant crossover points, and clearly indicate your conclusion.

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Answered: 2. A new copier company plans to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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please answer question 1 with details on how to do it. Thank you.
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A machine having a first cost of $20,000 is expected to save $1500 in the first year of operation, and the savings should increase by $200 every year until (and including) the 9th year; thereafter, the savings will decrease by $150 until (and including) the 16th year. Using equivalent uniform annual worth, is this machine economical? Assume a MARR of 10%.
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